Local property taxes fund a substantial portion of public education in Texas today. Asthe Texas Legislature provides property tax relief, a new source of education revenuemust be found. This report examines the viability of creating a payroll tax to fundTexas public schools. Payroll taxes, the author finds, have proven damaging tobusinesses, employees, and citizens – increasing the cost of doing business, reducingemployment, depressing wages, reducing economic competiveness, and obstructingeconomic growth.